COA orders return: Cash for brgy execs “illegal”

CEBU, Philippines - Barangay officials, secretaries, and treasurers of Cebu City's 80 barangays will have to refund the cash incentives they received from the city government last year after the Commission in Audit disallowed the release of the funds.

COA informed outgoing Mayor Michael Rama, City Accountant Mark Rossel Salomon, and City Budget Officer Marietta Gumia that the release of the cash incentives was "irregular."

"The grant of LGU (local government unit) City of Cebu of cash incentives totaling P21,513,000 to the following barangay officials is therefore irregular and contrary to the above mentioned laws, rules and regulations; thus, disallowed in audit," reads COA's Notice of Disallowance dated February 10.

According to Salomon, the 53-page notice was signed by COA Cebu City supervising auditor Cymbeline Celia Chiong-Uy.

COA cited section 393 (a) of Republic Act 7160 or the Local Government Code, which states that "barangay officials, including barangay tanods and members of the lupong tagapamayapa, shall receive honoraria, allowances, and such other emoluments as may be authorized by law or barangay, municipal or city ordinance in accordance with the provisions of this Code, but in no case shall it be less than One thousand pesos (P1,000.00) per month for the punong barangay and Six hundred pesos (P600.00) per month for the sangguniang barangay members, barangay treasurer, and barangay secretary:

COA also said the same legal provision states the incentive is allowed "provided, however, that the annual appropriations for personal services shall be subject to the budgetary limitations prescribed under Title Five, Book II of this Code."

"Review of the Annual Budget for CY (Calendar Year) 2015 disclosed that the source of funds of the herein expenditures totaling P21,513,000 was taken from the Current Operating Expenditures under Maintenance and Other Operating Expenditures (MOOE) instead of from personal Services contrary to Section 393 of RA 7160," the notice reads.

Last year, the city government distributed P45,000 to each of the 80 barangay captains, P27,000 to each of the 560 barangay councilmen, P18,000 to each of the 80 secretaries, and P18,000 to each of the 80 treasurers.

Protest

Salomon said the city can appeal within the next six months.

"Their ground is more on the propriety of the charging made. We will just justify nganong sakto ang pag-charge," he said.

Salomon said the city government did not violate any rule as the incentives were released in accordance to the budget ordinance approved by the City Council, which was also approved by the Department of Budget and Management (DBM) 7.

"It's under the budget ordinance that under MOOE. It was approved by DBM. They can't indirectly attack the budget ordinance. We have to file a protest," he added.

Rama, for his part, said yesterday he is yet to read the notice.

"It's a legal matter. As I have already been being suspended, Edgar (vice mayor Edgardo Labella) is also being suspended, but of course we will not run away. That will have to be handled by our legal team," he said in a phone interview.

Rama said he was wondering how the disallowance came when the city government has been giving cash incentives to the barangay officials in previous years.

He said he will not go to City Hall anymore since the suspension order over the disbursement of P20,000 calamity aid to each of the 4,200 City Hall employees has already been served against him and other officials.

Refund

Acting mayor Margarita Osmeña, meanwhile, said she heard about the disallowance, but she has not gotten hold of a copy yet.

She, however, urged the barangay officials, secretaries, and treasurers to refund the amount.

"Pay it back. Because you know if they don't, they cannot get anymore," she told reporters.

"Of course, i-liquidate but it doesn't mean forever that they cannot get unless they return that, correct?" she added.

Osmeña said barangay officials and others are bound to "follow what is from COA."

"See? If they just followed the procedures, then we would not come to this, right?" she said.

Brgy execs

City Council's ex-officio member Phillip Zafra who also heads the city's Association of Barangay Councils, said Barangay Tisa has not received the copy of the notice yet.

Zafra is also the barangay captain of Tisa.

"Wala pa ko ka-check. Wala pa mi naka-receive ana. We'll just see and wait. I will reserve my further comments once makadawat na mi. Pero continuing man na nga operation sa city ang pagpanghatag og allowance. The incentive has been there," he said.

Tejero councilman Garry Lao said the barangay received the notice last Monday afternoon.

Lao said he will abide by Osmeña's advice as she is the acting mayor.

Labangon Barangay Captain Victor Buendia received the notice and said the incentive was Rama's way of campaigning. He said he used the money to donate to residents who solicit money from the barangay.

Apas Barangay Captain Ramil Ayuman, for his part, said he is awaiting a copy of the notice so he can prepare the money to return to the city. - with Chelsea M. Malazarte (FREEMAN)